Old MathJax webview

need all

Question is full and complete

5 21 Indifference Point - Basics N 11 wo Companies, H and L have the same values for Turnover and Net Profit and make a similar product. H has a higher PV Ratio than L Which Company will perform better when: () the market demand is high? (i) the market demand is low? 4,900 7,350 Pairs 22 Indiference Point and BEP - Finding out missing figures XY Ltd makes two products X and Y, whose respective Fixed Costs are Fi and Fz. You are given that the Unit Contribution of Y one fifth less than the Unit Contribution of X, that the total of Fi and Fz is 1,50,000, that the BEP of X is 1,800 units (for BEP of X, Fz is not considered) and that 3,000 units is the indifference Point between X and Y.(i.e. X and Y make equal profits at 3,000 unit volume, considering their respective Fixed Costs). There is no inventory build up as whatever is produced is sold. ni are required to find out the values of F1, and F2 and Unit Contributions of X and Y. 675 03 Indifference Point Interpretation and Decision Making N 00 (Mod), M 02 (Mod), M 13 X Ltd wants to replace an old Machine. Three alternatives M1, M2 and M3 are under consideration, with associated data as Particulars M1 M2 M3 50 100 150 Direct Material Cost p.u. 40 70 200 Direct Labour Cost p.u. 10 30 50 Variable Overhead p.u. 1,50,000 70,000 2,50,000 Fixed Cost p.a. You are required to compute the Cost Indifference Points for these alternatives. Based on these points suggest a most economical alternative Machine to replace the old one when the expected level of Annual Production is 1,200 units. 26 Indifference Point Shin Work Prediction Error MAVURA LId operates its want on single chill basis. It can produce uplo 6,000 units of output per month without overtime. The Fixed Costs on eingle shirt basis of operation amount to 30,000 per month. The average variable costs per unitis? 10. The output can be increased uplo 15,000 units per month by working overtime. This entals no increase in fived costs, but the variable costs per unit during overtime will be x 12 in excess of 8,000 units upto the capacity of 15,000 units. However , a second shift to worked, the maximum capacity of the second shift is 8,000 units per month. The variable costs of second shift operation is x 1080 por call and the incremental fixed cost involved in second shitt operations is t 6,000 per month ivani M If the Company's demand for the product is 10,000 units, should the Company work overtime or second shift? Al what level of output will the Company consider working Second Shift instead of working Overtime? Mate the range of output for overtime working and second chill operation, During a particular month, the Company predicted its demand to be 14,000 units and worked second shiit. At the end of the montti, il was discovered that the Company's demand was only 11,000 units and the Company accordingly produced only 11,000 units, Calculate the cost of prediction error bolution Computation of Indifferenve Point